EU flags flutter in front of European Central Bank (ECB) headquarters in Frankfurt, Germany July 18, 2024. REUTERS/Jana Rodenbusch/File Photo
BRUSSELS: The European Central Bank (ECB) must retain full optionality on interest rates because uncertainty over the growth and inflation outlook remains elevated, according to Governing Council member Joachim Nagel.
“Since crucial factors can change quickly in the current environment, we are well advised to remain flexible,” the Bundesbank president said yesterday. “This means that pre-determining the future – neither a further interest rate cut nor a pause in monetary policy – is not sensible.”
